Project Details
Project
KB Kookmin Card Green, Social and Sustainability Financing Framework Second-Party Opinion (2021)
Client
KB Kookmin Card
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
South Korea
Evaluation Date
Apr 2021
Evaluation Summary
Sustainalytics is of the opinion that the KB Kookmin Card Green, Social and Sustainability Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, Social Bond Principles 2020, and Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds –Energy Efficiency, Clean Transportation, Green Buildings, Employment Generation, Socioeconomic Advancement and Empowerment – are aligned with those recognized by the Green Bond Principles, Social Bond Principles and Green Loan Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 1, 7, 8, 9, and 11.
PROJECT EVALUATION / SELECTION
KB Kookmin Card’s project evaluation and selection process will be managed by a Green, Social and Sustainability Financial Instruments Working Group (“GSSFIWG”). After the initial assessment is conducted by the Company’s business units, GSSFIWG will assess and approve the final eligible projects. GSSFIWG will review the allocation of the proceeds on an annual basis to monitor any changes in eligible projects. This is in line with market practice.
MANAGEMENT OF PROCEEDS
The GSSFIWG will track the proceeds using a GSS Bond Register (“Register”) and review the Register annually. The Company intends to allocate all proceeds within 36 months. Pending full allocation, unallocated proceeds will be held in cash, cash equivalents, investment grade securities, other marketable securities and short-term instruments aligned with its general liquidity management policies. This is in line with market practice.
REPORTING
KB Kookmin Card intends to report on allocation and impacts of proceeds on its website on an annual basis until full allocation. Allocation reporting will include information on the total amount allocated to eligible use of proceeds and breakdown per eligible category, the balance amount of unallocated net proceeds, and outstanding loans and investment that can be classified as one of eligible categories. In addition, KB Kookmin Card is committed to reporting on relevant environmental and social impact metrics. This is aligned with market practice.